Ericsson continues push into IP

Ericsson continued its transformation from a traditional circuit-switching vendor to a more data-centric company last week with a series of announcements, including the moving of its data communications group to the U.S.

The group, Datacom Networks and IP Services Business unit, will have its headquarters in Boston and be headed by Michael Thurk, who will become executive vice president and general manager of the business.

The company expects to build its data unit into a $1 billion business by 2000, said Anders Igel, executive vice president of Telefonaktiebolaget LM Ericsson and head of the Infocom Systems business area.

"We are convinced that the Internet is the most important development in the telecommunications industry...since wireless," added Bo Hedfors, president of Ericsson's U.S. operations.

As part of the new data focus, the company introduced several products at Supercomm, including edge routers designed for carriers deploying asymmetrical digital subscriber line (ADSL) in low penetration ratios. The AXI 510, meant for use in the Ericsson DSL access multiplexer platform and ADSL modem, supports up to 2000 private virtual circuits.

The company also added a splitterless ADSL modem to its ANxDSL platform.

In related news, Ericsson signed two separate deals that add to the company's asynchronous transfer mode strategy. The first, a minority equity investment in Mariposa Technology, complements the company's network edge products. Mariposa, a California startup, has taken much of the capability of core ATM switches and put it in a 19-inch chassis designed for the enterprise edge, said Stefan Mazur, president and CEO of Mariposa. "We are filling a small niche in the lower end of their offering."

The second move, an alliance with Efficient Networks, allows Ericsson to deliver end-to-end ATM over its DSL platform. Efficient will provide its SpeedStream line of ATM/ADSL customer premises equipment to Ericsson.